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Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

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Criminal LawDelhi High Court

Sahibji Travels and Tour Pvt Ltd & Ors vs. Pearl International Tours and Travels Pvt Ltd and connected matters

Criminal Miscellaneous Case · 2026:DHC:8217Decided 22 Sept 2026New Delhi Bench
CRL.M.C. 7061/2026, CRL.M.C. 7062/2026CNR: DLHC010452202026
Justice Sachin Datta

Background

The petitioner company and its directors had been convicted in two cheque-dishonour complaint cases filed by Pearl International Tours and Travels. A related civil suit between the parties was also pending. The parties settled all disputes via a settlement agreement dated 17.08.2026, under which the petitioners paid Rs. 25 lakh by demand draft, and the civil suit was withdrawn as settled.

Decision Breakdown

The Court quashed both complaint cases and the order of conviction already passed in them, relying on a recent Supreme Court ruling (Gian Chand Garg v. Harpal Singh) holding that offences under Section 138 of the Negotiable Instruments Act are compoundable at any stage, including after conviction, once the parties have reached a genuine settlement. The respondent confirmed receipt of the settlement amount and had no objection to quashing.

Lesson Learnt

Cheque-bounce cases under Section 138 NI Act can be settled and quashed even after a conviction has already been recorded: a settlement doesn't need to happen before trial concludes to bring finality to the dispute.

Sahibji Travels and Tour Pvt Ltd & Ors vs. Pearl International Tours and Travels Pvt Ltd and connected matters – Legal Case Shots | LegalAware